In November 2011, it was widely reported that the New York
Attorney General (the "NY AG") had opened an
investigation into the cause-related marketing efforts of
"pink ribbon" charities. As part of its examination, the
NY AG sent comprehensive questionnaires to at least 40 charities
and 130 companies asking for detailed information specific to
activities in which the sale of a product or service is advertised
to benefit a charitable cause. Venable has since obtained a
redacted copy of a typical questionnaire sent to companies involved
in cause-related marketing related to breast cancer, a version of
which appears below.
A cause-related marketer should review these questions (with a more
in-depth analysis available
here) to ensure that adequate answers could be given about a
proposed campaign in the event of an investigation by a state
regulator such as the NY AG.
Please answer the following questions regarding cause marketing
campaign(s) concerning breast cancer conducted by your company
and/or any of its subsidiaries, divisions or brands ("your
company") at any time since October 1, 2009. For purposes of
this questionnaire, cause marketing means any marketing of products
or services which states or suggests that a charity or charitable
cause will benefit from the purchase or use of the product or
service. Please use a separate questionnaire for each cause
marketing campaign and add additional pages to the questionnaire if
necessary.
1. Name of your company.
2. Please name the charity or charitable cause that is the subject
of your responses below.
3. What are the start and end dates for the campaign?
4. If the campaign has not ended, what is the date on which it is
expected to end?
5. Identify the product(s) or service(s) used in connection with
the campaign. (Attach additional pages if necessary)
6. Identify each method used to advertise or otherwise promote the
product or service in connection with the campaign. Check all that
apply:
|
product packaging |
in-store advertising |
|
television |
radio |
|
print media |
website (provide web address) |
|
|
|
|
|
other (describe) |
7. Does (or did) the campaign require the consumer to take any
action, other than making a purchase, in order for the charity or
charitable cause to receive a benefit? (for example, mailing in a
label or entering a code on a website)
Yes No
If Yes, please describe.
8. Please describe any benefit that the campaign stated or
suggested would be provided to the charity or charitable
cause.
9. Please describe the procedures for calculating the benefit due
to the charity or charitable cause.
10. If the campaign stated that a percent or amount of your
company's profits or proceeds or other financial measure would
be paid to the charity or charitable cause, describe how
"profits" and/or "proceeds" or other measure
are defined and calculated.
11. Did your company guarantee a minimum contribution to the
charity or charitable cause?
Yes No
If Yes, what amount was guaranteed?
12. Did your company place a limit (cap) on the amount it would
pay to the charity or charitable cause?
Yes No
If Yes, what is the amount of the limit (cap)?
13. If there is a limit or cap, are procedures in place for
discontinuing the promotion once the limit or cap is reached?
Yes No
If Yes, describe the procedures.
14. What are your procedures for disposing of and/or re-labeling
remaining products after the termination of the campaign?
15. What is the total value of the contribution or other benefit
that your company has provided to charity since the campaign began?
List the date and amount of each payment or other benefit. (Attach
additional pages if necessary)
16. If any contribution or other benefit has not yet been
provided, please state below the date(s) on which such contribution
or benefit is expected and the estimated value of such contribution
or benefit. (Attach additional pages if necessary)
17. Identify each of your company's products that contained
marketing for the campaign, and state the number of such products
produced for the campaign and the number sold during the campaign.
(Attach additional pages if necessary)
18. Did your company enter into a contract or other written
agreement with any charity concerning the campaign?
Yes No
If Yes, please attach copies.
19. Have you provided accountings or reports to any charity
detailing the amounts due to the charity in connection with the
campaign?
Yes No
If Yes, please attach copies.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
